Final Report on a He'licopter-borne Magnetic Survey

Wawa Area, Ontario

For •

Dianor Resources I! ~.-r--;~-.-.-J.~_ 730, 4th Avenue

Val d'Or Quebec, J'9P 1 J2

By

JUL 12 2005

G;~OScrENCE ASSESSMENT OFFICE

McPhar Geosurveys Ltd. 1256B Kerrisdale Blvd.

Newmarket, Ontario Canada, L3Y 8Z9

July, 2005

McPhar 0516

~.

TABLE OF CONTENTS Page #

SUMMARY ......................................................................................................................................... 5 1. INTRODUCTION .................................................................................................................... 6 2. SURVEY AREA ...................................................................................................................... 7 3. SURVEY OPERATIONS ...................................................................................................... 10

3.1 Operations Base .......................................................................................................... 10 3.2 Survey Conditions ...................................................................................................... 1 0 3.3 Navigation .................................................................................................................. 10 3.4 Field Processing & Quality Control ........................................................................... 11 3.5 Survey Statistics and Project Diary ............................................................................ 11

4. HELICOPTER AND EQUIPMENT ...................................................................................... 12 4.1 The Helicopter ............................................................................................................ 12 4.2 The Survey Instrumentation ....................................................................................... 13

4.2.1 Survey System Overview ............................................................................... 13 4.2.2 Airborne Magnetometer ................................................................................. 13 4.2.3 The Towed-Bird Airfoil and Tow-Cable ........................................................ 13 4.2.4 The Base Station Magnetometer .................................................................... 14 4.2.5 Altimeter ......................................................................................................... 15 4.2.6 The GPS Satellite Navigation System ............................................................ 15 4.2.7 Data AcquisitionlRecording System .............................................................. 15 4.2.8 Spares ............................................................................................................. 16

5. INSTRUMENT CHECKS AND CALffiRA nONS .............................................................. 17 5.1 Airborne Magnetic System Tests and Calibrations .................................................... 17

5.1.1 Magnetic Heading Effect ................................................................................ 17 5.1.2 Lag Tests ........................................................................................................ 17

5.2 Altimeter Calibration Checks ..................................................................................... 17 5.3 GPS Static Test. .......................................................................................................... 17

6. QC AND DATA PROCESSING ........................................................................................... 18 6.1 Flight Path Compilation ............................................................................................. 18 6.2 Base Station Magnetic Data ....................................................................................... 19 6.3 Corrections to the Magnetic Data ............................................................................... 19

6.3.1 Additional Corrections Applied to Profile Data ............................................. 19 6.3.2 Gridding .......................................................................................................... 20 6.3.3 Filter Derivatives ............................................................................................ 20

6.3.3.1 IGRF Removal ................................................................................ 20 6.3.3.2 Reduction-to-the-Pole ..................................................................... 20 6.3.3.3 Calculation of the First Vertical Derivative (1 VD) ......................... 21 6.3.3.4 Calculation of the Second Vertical Derivative (2VD) .................... 21 6.3.3.5 Calculation of the Total Horizontal Derivative (TOTHDRV) ........ 21 6.3.3.6 Calculation of the Analytic Signal .................................................. 21

7. DELIVERABLE PRODUCTS ............................................................................................... 22 7.1 Maps ........................................................................................................................... 22 7.2 Digital Data ................................................................................................................ 22 7.3 Interpretation .............................................................................................................. 23

7.3.1 Keating Correlation Coefficient ......................................................... 23

Rnal Report on a Helicopter-bome Magnetic SUlVey, Wew. AIu, Ontario McPh., 0516 Psg. 2

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7.4 Geophysical Interpretation and Recommendations .................................................... 23 7.4.1 Claim 3002757 ............................................................................................... 24 7.4.2 Claim 3002786 ............................................................................................... 24 7.4.2 Claim 3002755 ............................................................................................... 24 7.4.3 Claim 1243449 ............................................................................................... 24 7.4.4 Claim 1243372 ............................................................................................... 25 7.4.5 Claim 3015604 ............................................................................................... 25

7.5 Conclusions ................................................................................................................ 25 7.6 Report ......................................................................................................................... 26

LIST of FIGURES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7:

LIST of TABLES

Location of the Wawa Project Area, Ontario, indicating the area flown ........ 7 View of the survey area topography ............................................................... 8 Wawa Area survey area flight path ................................................................. 9 Helicopter C-GLMO with mag bird ............................................................ 12 Scintrex CS2 cesium magnetometer ............................................................. 13 Scintrex CS2 cesium magnetometer mounted in the towed-bird airfoil ...... 14 Data Processing Flow Chart ......................................................................... 18

Table 1: Dianor Resources Inc. Wawa Survey Area Description .......................................... 6 Table 2: Dianor Resources Inc., Wawa Area, Survey Area Description .............................. 8 Table 3: Project Diary ........................................................................................................ 11 Table 4: Field Personnel. .................................................................................................... 11

Rnal Report on a Helicopter-bome IIlIIn. Survey. lNaWi Area, Ontario McPhIT0516 Peg. 3

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APPENDIXl

APPENDIX 2

APPENDIX 3

APPENDIX 4

APPENDIX 5

APPENDICES

Statement of Qualifications

System Tests and Reports • Flight Logs • Daily Reports

Equipment Documentation • Scintrex CS2 Cesium Magnetometer • Terra TRA-3000 / TRI-30 Radar Altimeter • Fugro OmniStar DGPS Receiver

Personnel Resumes • Robert Hearst • AsifMirza

Page Size Maps • Flight Path with Planimetry • Digital Terrain Model (DTM) • Total Magnetic Intensity • Total Magnetic Intensity (IGRF removed) • Reduction to the Magnetic Pole (RTP) of the Total Magnetic Intensity

(lGRF Removed) • Calculated First Vertical Derivative (lVD) of the Reduced to the

Magnetic Pole (RTP) Total Magnetic Intensity (TMI) • Calculated Second Vertical Derivative (2VD) of the Reduced to the

Magnetic Pole (RTP) Total Magnetic Intensity (TMI) • Calculated Total Horizontal Derivative (TOTHDRV) of the Total

Magnetic Intensity (TMI) • Analytic Signal of the Reduced to the Magnetic Pole (RTP) Total

Magnetic Intensity (TMI) • Keating Correlation Coefficients on Reduced to the Magnetic Pole (RTP)

Total Magnetic Intensity (TMI) IGRF removed base.

Final Reporl on a He/icopfef..bome Magn.tIc Sumty, Wawa Area, Ontatio McPllar 0116

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SUMMARY

An airborne magnetic survey program was completed on the Wawa Joint Venture Property, WawaArea, Province of Ontario situated approximately 20 kIn northeast of Wawa, under contract to Dianor Resources Inc. signed June 2005. The program consisted of a high-resolution helicopter magnetic survey.

The McPhar crew was mobilised and arrived in the survey area on II June 2005. First tests and calibration flights were completed on 11 June 2005 with data acquisition initiated and completed on 12 June 2005. A total of213 line-kilometres of data were acquired, covering an area of approximately 18.5 square kilometres. The survey area was flown in one block with a nominal mean terrain clearance of30 metres for the magnetic bird on flight lines oriented east-west at a spacing of 100 metres and tie lines oriented north-south at a spacing of 1000 metres.

The purpose of the survey was to identify possible kimberlite-like intrusive zones and to meet the assessment requirements on the following claims held by Dianor Resources 3814793 Canada Inc. -Paulette Mousseau-Leadbetter Wawa Joint Venture which included the following claims:

• 1235691

• 1235693

• 1243350

• 1243351

• 1243372

• 1243449

• 3002755

• 3002757

• 3002786

• 3015604

• 3015605

• 3015641

The claims are located in Lastheels (G-2404) and McMurray (G-2795) Townships of the Sault Ste Marie Mining Division, Algoma Land Titles/Registry Division, Wawa Ministry of Natural Resources District.

Final Report on a Helicopter-borne Magnetic Survey, Wawa Area, Ontario IfcPhar OS1fJ PageS

1. INTRODUCTION

A detailed high-resolution helicopter-borne magnetic survey was carried out during the period of 11 June 2005 to 12 June 2005 on behalf of Dianor Resources Inc., hereinafter referrd to as "DRl", by McPhar Geosurveys Ltd, hereinafter referred to as "McPhar" , over the survey area approximately 20 ilometres northeast of Wawa, Ontario.

The purpose of the survey was to acquire high-resolution magnetic data to map the geophysical characteristics of the geology and structure in an effort to provide an insight into geologic and geophysical settings conducive to economic diamond mineralisation.

Table 1:

W awa

Totals

Dianor Resources Inc. Wawa Surve Area Deseri tion

18.5

18.5

100 m x 1000 m 190 23

190 23

213

213

The data acquisition involved the use of precision differential GPS positioning and a high sensitivity magnetometer system towed beneath a helicopter.

Mobilization of the helicopter, equipment and personnel from the Ottawa Area to the Wawa, Ontario Municiple Airport was completed on 11 June 2005. Installation of the survey equipment into the helicopter and pre-survey test and calibration flights were completed on 11 June 2005. The final survey fl ight was completed on 12 June 2005.

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2. SURVEY AREA

The survey consisted of two adjacent rectangular blocks identified by DRI as the Wawa Project, located approxUnately 20 kilometres to the northeast of the town ofWawa, Ontario. The primary objective of the surve was to ac uir eo h sical data in su ort of diamond ex loration.

o IIiiiiiiiiijI - --"'-

Figure 1: Location of the Wawa Project Area, Ontario, indicating the area flown (red).

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The topography of the survey area was variable, consisting of low hills and wetland areas. The elevation ranged from approximate1y 0 metres to over 400 metres above sea level. The survey area was dotted with temporary cabins and logging roads. Weather conditions during the survey were typically 25°C and clear.

Figure 2: View of the survey area topography.

The survey block comer coordinates were provided by DRI in WGS84, Zone 16N VTM easting and northing. Final maps were required in WGS847, Zone 16N VTM easting and northing. The following table contains the survey block comer coordinates in WGS84.

Table 2: Dianor Resources Inc. Wawa Area, Survey Area Description

I A1 672000 5321100 A2 672000 5318000 A3 674000 5321100 A4 674000 5318000 81 674000 5321100 82 674000 5317000 83 677000 5321'100 84 677000 5317000

The high-resolution magnetic survey lines were flown in a east - west direction with flight-line spacing of 100 metres with tie lines flovm perpendicular to the main survey lines at line spacing of 1 ,000 metres.

The Wawa Project Area covered a total of approximately 18.5 km2•

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D1ANOR WAWAAAEA FLIGHT PlAN

Flight lines :: 190 lne-llm, Te Il'Ies 22 6111la-km, Total 21261ne-km -f-_._ .... Figure 3: Wawa survey area flight path.

Final Report on Ii Helicopter-borne Magnetic Survey, Wsw. Ares, Ontario McPhsr0516 Page 9

-3. SURVEY OPERATIONS

3.1 Operations Base

Survey operations were based out ofthe Wawa Municiple Airport located approximately 20 kilometres southwest of the survey area. Permission was obtained to operate the helicopter, park and to locate and operate the GPS base station from the airport at Wawa.

Quality Control and preliminary data processing was undertaken remotely by McPhar from the Newmarket, Ontario office.

3.2 Survey Conditions

Weather conditions during the survey were good with clear skies and little cloud cover. Generally the temperature was in the mid 20°' s Celsius.

Sunspot activity, and hence diurnal geomagnetic activity, was quiet during the entire data acquisition period. No data were lost due to the geomagnetic activity.

3.3 Navigation

The nominal data acquisition speed was approximately 110 kilometres per hour. Scan rates for magnetic data acquisition was 0.1 second, and 1.0 second for the GPS navigation/positioning system. Therefore, a magnetic value was recorded approximately every 3.0 meters and a position fix each 30 meters along the flight track.

Navigation was assisted by a GPS receiver system that reports GPS co-ordinates as WGS-84 latitude and longitude and directs the pilot over the pre-programmed two-dimensional (2-D) survey grid. The x -y position of the aircraft as reported by the GPS system is recorded together with the terrain clearance as reported by the radar altimeter.

Vertical navigation along flight lines was established using the radar altimeter. The optimum terrain clearance during normal survey flying was 50 metres for the helicopter, 30 metres for the towed-bird magnetometer. However, due to rugged terrain in some areas, and the pilot's judgment of safe flying conditions in these areas, these terrain clearances were not possible 100% of the time.

The final vertical and horizontal survey positions were corrected in real time to a precision of approximately +/- 1.5 metre.

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3.4 Field Processing & Quality Control

The survey data was transferred to portable magnetic media on a flight-by-flight basis, and then emailed to the McPhar data processing facility in Newmarket, Ontario. Data processing included reduction of the data to GEOSOFT GDB database format and inspection of the magnetometer data for adherence to contract specifications. Survey lines that exhibited excessive deviation after differential correction, or that were considered to be of inferior quality, were marked to be reflown.

No reflights were required.

3.5 Survey Statistics and Project Diary

The survey entailed a total of 1 production flight, Fit #01, on 12 June 2005.

r. bl 3 P . to ' a e roJec lary ):;Iffi)

00!mJJ ~ .. h ..... "· ,,101:1.

11 June Crew mobilized by air with mag bird and other survey equipment from Ottawa Area, arriving in Wawa in the afternoon. Hotel and base station location selected.

12 June 1 2:1 213 All flight and tie 'lines flown, survey completed. 13 June Crew demobilized from survey area to Ottawa. Totals 2:1 213

The fonowing personnel were the crew on the project in Wawa Ontario:

Project Manager/QC Geophysicist Rob Hearst 0 Helicopter Pilot I Operator Alain Trombley 3

Table 4: Field Personnel

McPhar Geosurveys Ltd. of'-Tewmarket, Ontario, Canada, was responsible for the field operations, all geophysical matters and the overall coordination and management of the survey.

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4. HELICOPTER AND EQUIPMENT

4.1 The Helicopter

The survey was flown using a Robinson R44 Raven helicopter, with Canadian registration C-GLMO provided by Prospectair Inc. of Gatineau, Quebec. This helicopter featured up to 4.0 hours night duration with the geophysical system and a crew of2 persons onboard.

The installation of the geophysical and ancillary equipment was carried out by T.H.E.M. personnel in Gatineau, Quebec, with final adjustments and testing completed prior to mobilisation to the survey area.

Aircraft Registration: Engine: E mpty weight: Gross weight: Max cruise: HIGE: HOGE: Service ceiling: Standard fuel: Survey duration:

Figure 4: Helicopter C-GLMO with mag bird.

Canadian, C-GLMO Textron Lycoming - 0-540-FIBS - 245 hp 1,442 lbs /655 kg 2,400 lbs / 1,088 kg 113 knots / 205 kph 6,400 ft / 1,969 m 5,100 ft / 1,569 m 14,000 ft /4,308 m 49 gal /187 litres 4.0 hours

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4.2 The Survey Instrumentation

4.2.1 Survey System Overview

The instrumentation installed in the helicopter included:

• A Scintrex CS2 high-sensitivity Cesium magnetometer mounted in a towed-bird airfoil, 0.001 nT 110 Hz resolution

• A navigation system, comprising an Fugro 3000 OmniStar DGPS receiver and AGNA V GPS computer with pilot steering indicator (PSI)

• An T.H.E.M. Geophysics Data Acquisition System (DAS) • A Terra TRA-3000/TRI-30 Radar Altimeter

The processing and base stations comprised:

• A Magnetometer I GPS Base Station, comprising a PC-based DAS base station magnetometer and GPS system.

A complement of spare parts and test equipment were maintained at the survey site.

4.2.2 Airborne Magnetometer

A Scintrex CS2 cesium split-beam total-field magnetometer was employed installed in the kevlar airfoil. Sampling rate was ten ( 10) times per second with an in-flight sensitivity of 0.01 nT. Aerodynamic magnetometer noise was 0.25 nT or less. The sensitivity of the magnetometer is documented at 0.00 ] nT when operated at a sampling rate of OJ second.

The Scintrex CS2 magnetometer IS described In

Appendix 3. Figure 5: Scintrex CS2 cesium magnetometer

4.2.3 The Towed-Bird Airfoil and Tow-Cable

The towed-bird airfoil is essentially a hollow Kevlar tube, 3.0 meters long, with a bulbous nose into which the cesium magnetometer sensor is mounted in a 3D hand-alit:,'l1ed gimbal. The GPS antenna and TRA-3000 radar altimeter are installed elsewhere in the bird. Fins are used at the tail of the airfoil to stabilize the bird in flight.

The tow cable is constructed of coaxial cables complete with a strain member. The length of the tow cable is nominally 20 metres. The tow cable was attached to the helicopter by means of a weak link assembly. The on-board section of the tow cable consists of coaxial cable, the length customized to suit

Final Report on a Helicopter·borne Magnetic Survey, Wawa Area, Ontario McPhar0516 Page 13

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the helicopter.

Figure 6: Scintrex CS2 cesium magnetometer mounted in the towed-bird airfoil.

4.2.4 The Base Station Magnetometer

The magnetometer base station used was comprised of a PC-based computer utilizing a Scintrex CS2 cesium magnetometer to monitor and record diurnal variations of the Earth ' s magnetic field. The base station magnetometer was set up at the Wawa Airport. Every effort was made to ensure that the magnetometer sensor was placed in a location with a low magnetic gradient and sited away from electric transmission lines, and moving ferrous o~iects, such as motor vehicles and aircraft, without ompromising safety and airport operations.

The base-station magnetometer, with digital recording, was operated continuously throughout the airborne data acquisition work with a sensitivity of 0.01 nT. The ground and airborne system clocks were synchronised using GPS time, to an accuracy of 1 second or better. The sample rate was once per second. A continuously updated profile plot of the base station values was presented on the base station screen. At the end of the day, the digital data was transferred from the base station's data-logger to the fieldwork station.

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Specifications are included in Appendix 3.

4.2.5 Altimeter

A Terra TRA-3000/TRI-30 radar altimeter was used to record terrain clearance to an accuracy of about 1 ft (30 em), over a range of 12 metres to 762 metres. The antenna was mounted beneath the bubble of the helicopter cockpit. The recorded value of terrain clearance was adjusted to give bird height above ground. This was possible given the fixed tow cable length of 20 metres.

The altimeter was interfaced to the data acquisition system with an output repetition rate of 0.1 second, and digitally recorded.

The altimeter specifications are further described in Appendix 3.

4.2.6 The GPS Satellite Navigation System

An Fugro 3000 OmniStar DGPS receiver and AGNA V navigation computer with pilot steering indicator (PSI) provided in-flight real-time navigation control. A pilot steering indicator (PSI) installed on top of the cockpit dashboard, in front of the pilot provided steering and cross-track guidance to the pilot. The pilot was provided with GPS, and altimeter data to aid in the flying of the helicopter.

This navigation system yielded a real-time positional accuracy of better than ± 2 metre.

Survey co-ordinates were set-up prior to commencement of the survey, the information fed into the airborne navigation system. The co-ordinate system employed in the survey design and digital recording was WGS-84 latitude and longitude. The GPS positional data was recorded at one-second intervals and used with the base station data to calculate differentially corrected locations.

The GPS receiver is fully described in Appendix 3.

4.2.7 Data AcguisitionlRecording System

A PC-based T.H.E.M data acquisition system (DAS) was used to record the geophysical and navigation survey data on an internal hard disk drive. Data is displayed on an LCD screen as traces to allow the operator to monitor the integrity ofthe system. The DAS provides for the:

• System control and monitoring • Data acquisition recording • Real-time data processing • Navigation processing, and • Post flight data playback and analysis

All data collection routines, checking and verification, buffering, and recording are software controlled for maximum flexibility both during and after the survey flight.

Final Report on a Hellcopter-bome Magnetic Survey, Wawa Area, Ontario McPhar0516 Page 15

- 4.2.8 Spares

A nonnal compliment of spare parts, tools, back-up software, and necessary test instrumentation was available in the office at the airport.

Final Report on a Helicopter-borne Magnetic Survey, Wawa Area, Ontario McPh,,0516 Page 16

5. INSTRUMENT CHECKS AND CALIBRATIONS

5.1 Airborne Magnetic System Tests and Calibrations

5.1.1 Magnetic Heading Effect

The magnetic heading effect was determined by flying a cloverleaf pattern oriented in the same direction as the survey lines and tie lines. Two passes in each direction were flown over a recognizable feature on the ground in order to obtain sufficient statistical information to estimate the heading error. The heading error was determined from a test completed on 12 June 2005.

5.1.2 Lag Tests

A Lag Test was performed prior to mobilizing for Wawa to ascertain the time difference between the magnetometer readings and the operation of the GPS System. The test was flown over an identifiable magnetic anomaly by flying the same line in opposite directions at survey altitude. The lag test results indicated that a shift lag of -0.5 seconds was present in the system.

5.2 Altimeter Calibration Checks

An altimeter test was performed prior to mobilizing to Wawa. The radar altimeter was calibrated by comparing the radar altitudes with a suitable reading from the GPS navigation system during a radar "stack" flown over the Gatineau, Quebec airport runway. The ellipsoidal height at this location on was determined by GPS. The procedure employed involved having the helicopter hover for 30 seconds at various altitudes above the ground (30,40,60,90, 122 and 185 metres) and recording the values of the radar altimeter, barometric altimeter and GPS altimeter which were then plotted and compared.

5.3 GPS Static Test

In addition to carefully selecting a magnetically suitable area for the positioning of the magnetometer base station, care was taken to ensure that the exact position of the GPS base station was determined. The base GPS system data was averaged over a period of time to calculate the location coordinates. The base station GPS had a maximum field-of-view at all times to the NA VSTAR satellites.

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6. QC AND DATA PROCESSING

Daily quality control, initial processing and archiving of the data were completed ott-site at the base of operations at the Newmarket office of McPhar using Geosoft MONT AJ software and a notebook PC computer. All data were verified upon receipt, and checked against the operator' s fl ight logs.

The pre-processing or infield processing sequence included the follo\ving quality control measures:

a) Examination and checking of all incoming data to ensure completeness of data sets.

b) The production of preliminary flight path maps speed checks, terrain clearance checks.

c) Full profile quality control ofaB acquired traces for noise levels, data completeness, spike editing, and adherence to contract specifications.

Produce Corrected Profi les & Line Oata

Cal culate Spaial FiHer

Maps

Generate night path and coi'tOlr m..,s and colow images The final data processing, map generation and

report was completed by McPhar at the Newmarket, Ontario office.

Figure 7: Data Processing Flow Ghart

6.1 Flight Path Compilation

The flight path was derived from differentially corrected GPS positions using the real-time airborne GPS data. A position was calculated each 1.0 second (approx. each 30 meters along the flight path) to an accuracy ofbetler than +/- 1.5 meter. These position data were merged into magnetic and ancillary data in the Geosoft GOB database.

As part of the QAlQC process, the following GPS parameters were checked on a daily basis:

• Number of satellites under observation (average of 6, minimum of 4 allowed) • POOP (position dilution of precision; maximum value of 3 allowed) • Flight path deviation in X, Y and Z (maximum deviation in X and Y of 50% of line spacing

over a linear distance of 5000 metres)

If the above specifications were not met, a reflight was necessary.

Final Report on a Helicopter·borne Magnetic Survey, Wawa Area, Ontario McPhar0516 Page 18

All positional data was maintained in WGS 84 (World) coordinates.

6.2 Base Station Magnetic Data

The base station magnetometer data was edited, plotted and merged into the GDB database on a daily basis.

The QAlQC procedure to determine acceptable magnetic base station data involved:

• Despiking of the base station data resulting from cultural activities not associated with the performance of the survey.

• Determination of the maximwn noise of the observed total magnetic intensity (TMI; 1 nT maximwn allowable).

• Determination of the average 4th difference noise of the signal (maximum of 0.2 nT allowable) • Determination of the rate of diurnal change (maximwn gradient of 4 nT for a 5 minute chord).

6.3 Corrections to the Magnetic Data

The processing of the data involved the application of the following corrections:

,-. • Correction for diurnal variation using the digitally recorded ground base station magnetic values.

• Adjustment of the data for the time lag between the GPS position and the position of the magnetic sensor.

• Correction for the heading effect and • Network adjustment using the flight line and tie line information to level the survey data set.

The corrected data was then used to generate the Total Magnetic Intensity grid.

6.3.1 Additional Corrections Applied to Profile Data

After applying the above corrections to the profile data residual line-direction-related noise was removed through application of microlevelling. The micro levelling technique consists of applying directional and high pass filters to produce a grid containing noise-only in the line direction. In order to differentiate between the two of them, the grid is extracted to the profile databa')e, and an amplitude limit and a filter length are determined, so that the final error channel reflects only noise present on the grid without removing or changing geological signal. This error channel is then subtracted from the initial data channel in order to obtain the fmal microlevelled channel. The resulting grid is free of line direction noise.

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6.3.2 Gridding

The corrected magnetic line data was interpolated between survey lines using a random point minimum curvature gridding algorithm to yield x-y grid values for a standard grid cell size of 1/5th of the line spacing.

6.3.3 Filter Derivatives

The Total Magnetic Intensity (TMI) data were subjected to:

• IGRF removal • Reduction-to-the-pole • Calculation of the First Vertical Derivative (1 VD) • Calculation of the Second Vertical Derivative (2VD) • Calculation of the Total Horizontal Derivative (TOTHDRV) • Calculation of the Analytic Signal

Colour/contour images were produced for all the above listed magnetic products.

All of these spatial filtering techniques were completed using the Oasis Montaj Magrnap and IGRF modules for filtering in the 2D FFT domain.

6.3.3.1 IGRF Removal

The International Geomagnetic Reference Field (IGRF) is a long-wavelength regional magnetic field calculated from permanent magnetic observatory data collected around the world. The IGRF is updated and determined by an international committee of geophysicists every 5 years. Secular variations in the Earth's magnetic field are incorporated into the determination of the IGRF.

Through the removal of the IGRF from the observed Total Magnetic Intensity (TMI), the resulting residual magnetic intensity allows for more valid modelling of individual near surface anomalies. Additionally, the data can be more easily incorporated into databases of magnetic data acquired in the past or to be acquired in the future.

6.3.3.2 Reduction-to-the-Pole

To compensate for the shift of the true anomaly position over the causative source, due to the magnetic inclination and declination, the magnetic data was recomputed so that magnetic anomalies will appear as they would if located at the north magnetic pole. The result of this operation is that in theory, the magnetic anomaly is located directly overtop of the causative source. The computation is referred to as "reduction-to-the-pole" (RTP). The reduction-to-the-pole is computed using a FFT (Fast Fourier Transform) operator.

The RTP not only shifts the anomalies to their correct position with respect to th(~ causative magnetic bodies, but assists in the direct correlation and comparison of magnetic anomalies, trends, structural axis, and discontinuities with mapped geologic surface expression.

Final Report on a Helicopter-borne Magnetic Survey, Wawa Area, Ontario McPhar0516 Page 20

-The RTP was calculated using the following parameters for the survey area:

Geomagnetic Inclination: Geomagnetic Declination:

6.3.3.3 Calculation of the First Vertical Derivative (lVD)

Vertical derivatives compute the rate of change of the field as it drops off when measured vertically over the same point (upward continuation). Potential field data obeys Laplace's equation, which allows for the computation, through the FFT package, to take advantage of this symmetry and solve for the vertical or "z" component of the field. The First Vertical Derivative (l VD) has the effect of sharpening anomalies, which allows for better spatial location of source axes and boundaries

6.3.3.4 Calculation of the Second Vertical Derivative (2VD)

To enhance local anomalies and to outline the edges of anomalous bodies within the data, a Second Vertical Derivative (2VD) is computed. The 2VD is a powerful interpretive tool and that is used to assist in the delineation of causative bodies and to accurately locate changes in the magnetic field gradients. Better defmition of discontinuities and their relationship to geology can be gained from the use of this tool. A 2VD will show steep gradients over faults and positive closures over the ''up thrown" blocks.

6.3.3.5 Calculation ofthe Total Horizontal Derivative (TOTHDRV)

To highlight anomalous areas which may be the result of a magnetic source of limited strike length, a Total Horizontal Derivative (TOTHDRV) is computed. The TOTHDRV is a powerful interpretive tool that can accurately define the edges of magnetic features such a dykes and vertical cylindrical geologic units that have sharp, but limited in area, magnetic gradients and geometry. A TOTHDRV will indicate peak gradients along the edges of narrow dykes and a circular, donut shaped anomaly over vertical cylinder sources.

6.3.3.6 Calculation of the Analytic Signal

The analytic signal is the square root of the sum of the squares of the derivatives in the x, y, and z directions:

asig sqrt ( dx*dx + dy*dy + dz*dz)

where: asig is the Analytic Signal sqrt is the square root of dx is the horizontal gradient in the x direction dy is the horizontal gradient in the y direction dz is the vertical gradient in the z direction

The analytic signal is useful in locating the edges of magnetic source bodies, particularly where remanence and/or low magnetic latitude complicates interpretation.

Final Report on a Helicopter-borne Magnetic Survey, Wawa Area, Ontario McPhar 0516 Page 21

7. DELIVERABLE PRODUCTS

The survey data are presented as colour/contour maps on paper, produced at a scale of 1 :20,000. A set of report-sized colour/contour images, on paper, are included as Appendix 5. Ibe basic co-ordinate system used is WGS84, Universal Transverse Mercator Zone 16N. All digital data are also presented on CD-ROM in ASCII format.

The deliverable items of this survey are:

7.1 Maps

The following maps, at a scale of 1 :20,000, are delivered in two (2) paper copies.

7.2

• Flight Path with Planimetry • Digital Terrain Model (DTM) • Total Magnetic Intensity • Total Magnetic Intensity (IGRF removed) • Reduction to the Magnetic Pole (RTP) of the Total Magnetic Intensity (IGRF Removed) • Calculated First Vertical Derivative (I VD) of the Reduced to the Magnetic Pole

(RTP) Total Magnetic Intensity (TMI) • Calculated Second Vertical Derivative (2VD) of the Reduced to the Magnetic Pole

(RTP) Total Magnetic Intensity (TMI) • Analytic Signal of the Reduced to the Magnetic Pole (RTP) Total Magnetic Intensity

(TMI) • Keating Correlation Coefficients on Reduced to the Magnetic Pole (RTP) Total

Magnetic Intensity (TMI) IGRF removed base.

Digital Data

The edited field and processed digital data are delivered in two (2) copies, in ASCn code, on CD-ROM. The final processed line and grid data, in GEOSOFT format, are also delivered in two (2) copies on CD­ROM. Full descriptions of the digital data formats are included in this fmal report (see below) and as text files on each CD-ROM. Each CD-ROM has a README. TXT file describing the contents and the file formats.

Final Report on a Helicopter-bome Magnetic SUrvey, Wawl Anta, Ontario McPhar0516 Page 22

7.3 Interpretation

The area covered by the airborne magnetic survey is geologically complex. Present are what geophysically appear to be magnetic dykes of the Matchewan and Nipissing dyke swarms in addition to an apparently folded Iron formation hosted in a somewhat homogeneous metasedimentary environment. The area is also punctuated with several apparently vertical, cylindrical pipe-like intrusives.

In order to provide a structural interpretation of the area flown, the following products were generated and used:

1. All gradient data (TOTHDRV, 1 VD, 2VD and Analytic Signal) have been calculated and analysed in an attempt to define structural controls on the geology and to identify possible kimberlite - like intrusive bodies.

2. Kimberlite -like intrusive identification has been attempted through the application of "Keating Correlation Coefficient" analysis.

3. Examination of the RTP and RTP IGRF Removed maps.

7.3.1 Keating Correlation Coefficient

An automated anomaly recognition technique developed primarily for and applied to the search for vertical cylindrical source geometries (i.e. kimberlite pipes), the Keating Correlation Coefficient, was applied to the RTP TMI IGRF Removed data. The technique computes the flIst-order regression between a vertical cylinder model anomaly and the gridded magnetic data. The technique is based upon the assumption that a vertical magnetic sylinder is a first approximation (geometric) of a kimberlite pipe. If the assumption is valid, then a clustering of solutions will be obtained around a common point. Magnetic bodies of irregular geometry may not be detected by this method.

Model anomalies were generated for the RTP TMI response of a cylinder of 100 metres radius, buried approximately 5 metres below surface. Solutions with an absolute correlation of greater than 75% were accepted and plotted. The results of the Keating Correlation Coefficient calculation are presented in plan map form as a separate map on a RTP TMI IGRF Removed base map.

Application of this procedure resulted in the identification of twelve (12) clusters of Keating Correlation Coefficient solutions.

7.4 Geophvsical Interpretation and Recommendations

The application of the above processes has resulted in the identification of twelve (12) areas worthy of further investigation from a diamond prospecting perspective. Of these twelve (12) areas, five (5) are in patented mining claims not controlled by the Joint Venture.

Of the remaining seven (7) anomalous clusters, two (2) are negative correlations and five (5) are positive correlations. A negative correlation is interpreted as being an indication of remanent magnetisation, the causative body being intruded during a period of magnetic field reversal. The

Final Report on a Hellcopter-bome MagnetiC SUlYey, Wan AlVa, Ontario McPhar 0516 Page 23

positive correlations are indicative of normal magnetisation, the causative body being intruded during a period of the Earth's magnetic field being in a similar orientation to the present.

A brief discussion of the seven (7) anomalous targets with additional work recommendations is discussed in the following sections.

7.4.1 Claim 3002757

The Keating Correlation Coefficient (KCC) cluster in this claim is a negative correlation, corresponding to a local magnetic low on the TMI maps. The TOTHDRV map defines a donut shaped anomaly coincident with the KCC cluster. The vertical derivatives are less diagnostic in defining anomaly.

The target is located at 672750 mE, 5318800 mN in a stream flowing into Shook Lake. Suggested follow-up methods would include detailed geologic mapping, heavy mineral sampling and detailed ground magnetometer survey to verify the anomaly shape and location.

As the target is in an area of topographic gradient, overburden coverage may be minimal and the causative body may be exposed in the valley sides and/or streambed.

7.4.2 Claim 3002786

Located on a topographic high at 673200 mE, 5318900 mN, the anomaly is a series of positive KCC clustered solutions. Inspection of the TMI maps indicates that the cluster is on a. discrete positive magnetic feature that is teardrop in planimetric shape. The vertical derivatives exhibit coincident anomalies and the TOTHDRV defines a squarish, donut shaped anomaly, suggesting a discrete intrusive body.

7.4.2 Claim 3002755

Straddling the Township boundary between Lastheels and McMurray Townships; there are two KCC anomalies in this claim. The KCC anomalies consist of one positive and one negative correlation cluster.

The negative KCC cluster is located in relatively flat ground at 673650 mE, 5320250 mN. The other derivative products indicate a less well defined anomaly in this area.

The positive KCC cluster is located in a stream flowing into Shook Lake from a smaller lake/pond. The cluster is located at 674250 mE, 5320300 mN.

7.4.3 Claim 1243449

Located in the south central half of Claim 1243449 in close proximity to a small river, this positive KCC cluster is poorly defined on the other derivative magnetic products. The coordinates for the anomaly are 676000 mE, 5320000 mN.

Fina' Report on a Hellcopter-bome MagnetiC SUrvey, Wawa Area, Ontario McPharOS16 Page 24

,- 7.4.4 Claim 1243372

Located to the northeast of Roddy Lake at 675750 mE, 5319300 mN, this anomaly is potentially located at the intersection of a NE striking Nipissing dyke and a NNW trending Matchewan dyke.

A discrete anomaly is observed on all derivatives, suggesting that this anomaly, when intruded, may have significantly altered the surrounding rock.

7.4.5 Claim 3015604

Similar to the previous target, this anomaly appears to occupy a position of intersection between a NNW striking dyke and a NNE striking dyke. The KCC solutions are positive and the anomaly is well defined on the TOTHDRV map.

The anomaly is located at 674950 mE, 5318250 mN in a potentially swampy low topographic area.

7.5 Conclusions

The seven (7) KCC anomalous clusters should be followed up with investigation on the ground prior to drilling. Detailed geologic mapping is required to better evaluate the source of the magnetic anomalies. Grab samples should be obtained and analysed for magnetic properties in addition to mineral content.

Geochemical sampling and/or correlation with geochemical sampling results would prove to be invaluable in further evaluating the diamond potential of the KCC clusters. As some of the targets may be located in areas of "wet" overburden (swamps) geologic mapping and geochemical sampling may be of limited value. In these cases, further follow-up with ground geophysical surveys including but not restricted to ground magnetometer surveying may be warranted.

Heavy mineral sampling of the streams and drainage systems in which KCC clusters have been found may provide additional information prior to drilling and indicate the presence of other possible non-magnetic sources in the area.

Fina' Report on a He/icopter-bome MagnetiC Survey. W.wa Are •• Ontario McPhar0516 Page2S

7.6 Report

Two (2) copies of a survey report were delivered, complete with all final maps as page size maps. This report provides information about the acquisition, processing and presentation of the survey data.

Respectfully submitted, McPhar Geosurveys Ltd. '1

/11/1 ' .. / ./ ...... // //~.:i ,/ :tt!;/;r,r

~bert Hearst, M.sc.,/GeoPh. (NAPEG) Consulting Geophysicist

Final Report on a Helicopter-borne MBflnetic SUlVey, Wawa Area, Ontario McPhar0516 Page 26

APPENDIXl

APPENDIX 2

APPENDIX 3

APPENDIX 4

APPENDIX 5

APPENDICES Statement of Qualifications

System Tests and Reports • Flight Log • Daily Report

Equipment Documentation • Scintrex CS2 Cesium Magnetometer • Terra TRA-3000 / TRI-30 Radar Altimeter • Fugro OmniStar DGPS Receiver

McPhar Personnel Resumes • Robert Hearst • AsifMirza

Page Size Maps • Flight Path with Planimetry • Digital Terrain Model (DTM) • Total Magnetic Intensity • Total Magnetic Intensity (IGRF removed) • Reduction to the Magnetic Pole (RTP) of the Total Magnetic Intensity

(IGRF Removed) • Calculated First Vertical Derivative (lVD) of the Reduced to the

Magnetic Pole (RTP) Total Magnetic Intensity (TMI) • Calculated Second Vertical Derivative (2VD) of the Reduced to the

Magnetic Pole (RTP) Total Magnetic Intensity (TMI) • Calculated Total Horizontal Derivative (TOTHDRV) of the Total

Magnetic Intensity (TMI) • Analytic Signal of the Reduced to the Magnetic Pole (RTP) Total

Magnetic Intensity (TMI) • Keating Correlation Coefficients on Reduced to the Magnetic Pole (RTP)

Total Magnetic Intensity (TMI) IGRF removed base.

Final Report on a He/icopter-bome Magnetic Survey, Wawa Area, Ontario McPhar0516 Page 27

1

-

APPENDIX 1

Statement of Qualifications

-

-

Robert Bruce Hearst 19 Beethoven Court

Toronto, ON, Canad~ M2H 1 WI Telephone: 416-407-6355 Facsimile: 416-492-7132

E-mail: rhearstta1mgssurveys.com

Statement of Qualifications

I, Robert Bruce Hearst, P.Geoph. do hereby certify that:

1. I am currently employed as Senior Geophysicist I Data Processing Manager by:

McPhar Geosurveys Ltd. 1256B KerrisdaIe Blvd. Newmarket, Ontario Can.L3Y8Z9

2. I graduated with a H.Bsc. degree in Geophysics, Geology and Geophysics option from the University of Western Ontario in 1983. In additio~ I have obtained an M.Sc. Geology and Geophysics from McMaster University in 1996.

3. I am a member of the CIM (Toronto and National Branches), KEGS (Canadian Exploration Geophysical Society, Past President), SEG (Society of Exploration Geophysicists), EEGS (Environmental and Engineering Geophysicists Society), PDAC (prospectors and Developers Association of Canada) and a Licensee of NAPEGG (Association of Professional Engineers, Geologists and Geophysicists of the Northwest Territories).

4. I have worked as a geophysicist for a total of 21 years since graduation from the University of Western Ontario.

5. I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI 43-101") and certify that by reason of my education, affiliation with a professional association (as defined by NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes ofNI 43-101.

6. I am responsible for the preparation of the Final Report on a Helicopter-borne Magnetic Survey, Wawa Area, Ontario dated July 2005 (THE "Technical Report") relating to the Wawa Property, Ontario, of Dianor Resources Inc. I have not visited the property.

7. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.

( 8. I am independent of the issuer applying all of the tests in section 1.5 of National Instrument 43-101.

9. I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.

10. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on therr websites accessible by the public, of the Technical Report.

Dated this 7th. day of July, 2005

Robert Bruce Hearst

2

-

APPENDIX 2

System Tests and Reports -

-

McPHAR AIRBORNE GEOPHYSilCAL FLIGHT LOG McPHAR

CLIENT: Dianor Resources Wawa JOB: 5161PAGE 1 of2

FLT #: 1 Date (dd/mm/yr) : 12 L 06 OPERATOR: Alain Tr()mbl.!i:~

PILOT: Ala;i.n Tromble~ O.A.T. : I A/c REG : C-GLMQ

DE PART TIME: RETURN TIME: TOTAL FLIGHT TIME: 2:24

SURVEY HEIGHT: 3..Q...m BASE MAG/GPS FILES:

LINE # FIDUCAL BINARY FILE NAME COMMENTS START END

10

20

30

40

50 I

60

70

80

90

100

11 0 I

120

130 I! I

140

150

160

170

180

190

200

21 0

220

230

240

SPECTROMETER SAMPLE CALIBRATION CHECKS Presurvev Spec Calibration Postsurvev Spec Calibration

Cs137 Peak Chan: Cs137 Peak Chan: Start End Comments Start ! End Comments

BKG BKG Cs 137 Cs 137

U U Th Th

BKG BKG Binary File Name., _________ _ Binary File Name: ________ _

McPHAR AIRBORNE GEOPHYSICAL FLIGHT LOG McPHAR

CLIENT: Dianor Resources Wawa JOB: 5161PAGE 1 of 2

FLT #: 1- Date (dd/mm/yr): 1 2 L 06 OPERATOR: Alii.in I;!;:ombl§lY

PILOT: Alii.in Trombley O.A.T.: I Ale REG: C-~LMO

DEPART TIME: RETURN TIME: TOTAL FLIGHT TIME: 2:24

SURVEY HEIGHT: ~ BASE MAG/GPS FILES:

LINE # FIDUCAL BINARY FILE NAME COMMENTS START END

250

260

270

280

290

300

310

320 I I

330

340

350

360

370

380

390 I

400

41 0

420

430

T10010

T10020

T10030 I I I I

T10040

T1 0050 TIOO60

I SPECTROMETER SAMPLE CALIBRATION CHECKS Presurvey Spec Calibration Postsurvev Soec Calibration

Cs137 Peak Chan: Cs137 Peak Chan: Start End Comments Start End Comments

BKG BKG II

CS 137 I Cs 137 U U Th Th

BKG BKG Binary File Name._~ _______ _ Binary File Name: ________ _

Project#: 516 Daily Field Report· Managua Nicaragua I Report Date: 06/12/05 AirC/7Jft: C-GLMO SURVEY PERSONNEL

Report Number: 1 Ops Base: Wawa, Ontario Field Data QC: Robert Hears!

Client: Dianor Resources Inc. Country: Canada Pilot Alain Trombley

1----- Survey Type: High Resolution Gradiometer Spectrometer Survey Ope/7Jtor Alian Trombley

Survey Area: Pavon Logistics Alian Trombley

ProjectKm: I 213.00 Total Flown Total Accepted Km flown today: 213.00 213.00

Accumulated km: 213.00 213.00 Percent Completed: 100.0%

Lines flown: 43 fliqhl lines and 6 tIe hnes Flight # Tach start Tach Stop Flight Total Tach Accumulated Take off (GPS time) Land (GPS time) Hours Flown

2:01 r-Weather: Ie lear Hours Flown Today: L:Ul

Accum, Standby: Accumulated Survey Days: Accumulated Project Hours: 2.02 COMMENTS Project flown in one day

CONTROL Flight #: Flight date: I POST FLIGHT Accepted km Re'ected km Reasons for Re'ection

REFLIGHTS OBSERVATIONS. LINES REFLOWN

Rejected km

- KmstQday Accumulated km

Percent Completed Operations Base:Managua Nicaragua

Project Manager: Tim Badger 1-905-830-6880 lbodaert«ilmas5urvevs.com Field Data QC Robert Hearst 1-905-830-6880 I mearsl@1m!lssurveVS.l:!:!!J1 ....-...

I Systems Engineer Barry Levy 1-416-315-7140 blevvtftlmassurvevs.com

IIRAJ~~ 1 HSE Manager: Victor Oetke 1-905-830-6880 vhotlllmq!lSurveys.com Logistics Alain Trombley -819-661-2029 atromblev(!i)svmpallCO.ca

McPhar G_urveY' Ltd. --12568 Kerrt.Hle Boulevard, Newmarket, anuria, Canada L3Y 8Z9 Tel: ltoll) 83O-G80, Fax: (toll) 8t8-4338. E-mail: InfoOmgaaurveya.com

'Please note that kilometres flown are estim ates, 'Exact kilometres will be calculated upon completion of survey. and will be based on GPS observations & contractual boundaries

3

--

APPENDIX 3

Equipment Documentation

--

--

cs-2 High Resolution Cesium Magnetometer

Looking for:l high·reso!ulioo IltlgJICIIII1lC..1('r:>l'JOOI' ""Weh offe~ high

SCIlsili\ify, high groUlil'fll tolerance. die narfO\\bl <ic:td lOnl', the y,idest

actin' lone. the snulle~1 ht':ldioJ; m ol', all \\;111 )t'Jrs or IJrO\(l1

reli:lbili~ " look [10 funhl1' Ulan one of

the okl~ mlHll'S in r,t:opilysirs. S(J\ TJ{F~\.

11\C !idnlm ('.).1 is a high n.~hlljon. hi¢!

St11~tr.lty Cl'Sium m:J,IlfM'Iomelcr Ih~1 i:i

idl"J.lI~' suill'Ci for:l wide I<lricrr of m:tglll1ic

applkations. The (S-l j~ the 1:1ICSI ce-;iul1l

nugnt101Mer st'nSOr in a Img Une of ccs1um IIlJg:netomClrr d{'\'d o plllenL~

~ Scinll'C'(. \l'lum used \\-ilh aIllll'PTO)Miall' pWCt':lsor the magnL1ir I~U:1

from me Q).-ll.'i IIn~urllasscd in ib qualil}'.

The unique dc$ign of t1lC ~2 arnJ it'! high tolef'lJll:r of ad\l'r.;t opel'2ling

l1lndltioru; while still prn\iding tjualIty tiat:l, make !hI.' (..\-2 the magnetic

sensor of dlOic{' for user"s,

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of chu/tr for m:tn)' airOOntC gl'Ophysical

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borne (C'drs, ln1ck~ .. m-'s and sno\\mobil<.'S) ,

ground Ixi.-ed and "\:Inm,' hlgh·l't'SOlution

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tnchllk'. mlllL'f.l! l'xplor.uion, oil 01 gas L~Or.Won. magnetic ha\C ~

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(un~llJodc..lI ordnancr) 1I1'h . .'ction.

G~~-2 SPf.t:lPII:.~T10~S

@.OPTlOSS

Oper~tin~ Princlp~J '

OpmUill1t RaUS!t': GrOOk:nI Tokn.ncc: OperJIiIl)t lOJ1(,'S:

Ul'!1Ii~phere S\\I«:hi~.

N'1tSIU\i~ : ~Iio;e Enlelope'

lleadlng Error: ·\b~L1le ,\C;(tIrJq~

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suppl~ \oh:age at SOil /" SOm \ fW'.I1.: [. f:'Il'C\ronlc control ~Ctuatoo ~ tJw l'Ontrol Illha!\~ l~t'l (nIJr'lo.'i) 311hc 110 COIUll.'C1or O.OOO6nTI III mL~.

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6.lmm US) l60mm (6.~·) 1.15kg (Hllb) (ijmm U.5") 3SOmm OH') I.~kg (j.:\lb)

r~lhle, &n.sor to ~nsor liIectrook-s:

Opt'ratln,g 1'cmllCt":uurt'; Ihunidl1r

.<in~.IQ I j(t'C up 10 100%. spla.'.h-prtlo( F In.r; \"oIL~ IX: SU]l])I~ Po"t1":

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SCINTREX @so-9001 •

.::. , .... _., ............. ..

MCPHAR McPhar Geosurveys Ltd.

12568 Kerrisdale Blvd., NeMna-ket OnOrio,Canadal3Y8Z9

T~: (905)~, Fax: (905) 8~336 E-M~ : info@mgssurveys.com

WebSite: www.mgssurveys.com

The Terra TRA·3000 Radar Altimeter unit provides AGL (Above Ground Level) altitude information from 40 feet (12.3 m) up to 2,5ll0 feet (769 mI. The system consists of a single TRA·3000 receiver/transmitterlantenna unit and a TRI·30 indicator.

SPECIFICATIONS 'RA,3000

Type: Attitude Range: System Accuracy:

40 to 100 ft 100 to 500 ft 500 to 2,500 ft

Frequency Range: Input Voltage: Input Current: Attitude Output: Self·Test: TransmitterfReceiverJAntenna: Physical: Environment: Unlock display:

TRI,30 Indicator Power Supply: Environment: Physical: Mounting: Altitude range: Analog display:

Decision height: Display update rate: Analog output: Display disable: Attitude accuracy:

40 to 100 ft 100 to SOO ft SOO to 2,SOO ft

Aural Decision Height alert: Self-test: Visual alert:

Single antenna, FMCW 40 to 2,500 ft

+/. 5 ft +/-5% +/-7% 100 MHz sweep within 4,200 to 4.400 GHz range Approx. 20 VDC from indicator 600ma D~Hal Ground or night, initiated at indicator All soIid·state, microstrip antenna, Size -1" H x 5" W x 7.62S" L, Weight· 1.Slb. -4{)O C to + 7{)O C Altitude - 45.000 ft

Input voltage - 27.5 VDC +/- 20% Power -16 watts nominal (includes po'Ner to T/RJA unit Size - 3.25" H x 3.25' W x 4' L, We~ht -lib. Front panel mounting; requires a 3" ATI mounting space 40 ft. to 2.500 ft (linear); 40 - 500 ft (enlaflled linear) Servo; pointer and dial type Needle witt go off scale on the high-end Bug, continuous setting from 40 to 2,500 ft. continuous 2.5 mvlft., 100 mv = 40 ft. One strut switch input, ground to enable

+/- 5 ft +/,5% +/-7% 1 KHz tone for 2 sec. (500 ohms) adjustable audio level Indicates 40 ft., DH operates nonnally Amber lamp with automatic adjustable intensity; internal LED standard; extemallamp operation available.

OmniSTAR 3000LS SERIES DGPS RECEIVER PRODUCT FAMILY

Technical Data

The 3000L Series OGPS receivers are the product of years of research and development and represent the latest technology and one of the highest levels of integration yet be seen in Satellite DGPS receivers.

Fugro transmits differential GPS correction data to user mobile receiver units via L-band satellites worldwide. The correction data is generated by a network of ground (reference) stations located worldwide and monitored around the dock by three regional control centres. The nannal operating environments for the receivers is vessel mounting for precise navigation.

The 3000l series incorporates high quality RF components and circuitry which ensures the besl possible performance in fringe area reception and/or noisy reception areas where good signal to noise performance means the difference between the receiver "rocking on" to the signal or failing to receive.

The 3000l series also incorporates a powerfiJl DSP (digital signal proceSSing computer), and one of the latest technology RISC (Reduced Instruction Set Computing) embedded processors for receiver control and general purpose processing. The embedded processor operates in real time continuously checking the dais integrtty, the receiver system health and the computed solution integrity and immediately notifies any out of limits or other alarm condition to the operator. A CAN bus interface is available for access to the processor for machine control and dais transfer functions under special software controls. The 3000L Series uses Forward Error Correction Techniques and Fugro proprielsry data compression and enayption algorithms to ensure data integrity security and efficiency. These systems are software implemented so that the receiver remains a flexible tool for a wide variety of applications which may require specialised software implementations to suit different users needs.

3000LRS A full function receiver system inside a field case with a display and push button operator interface, Antenna input, Power & Dais inputs & outputs,

3000LR8S A full function receiver system inside a field case with a display and push button operator interface, Antenna input, Power and Data inputs and outputs. This unit is equipped with special enhanced differential solution software and also incorporates an intemal 8 channel GPSengine.

3000LR12S A full function receiver system inside a field case with a display and push button operator intert"ace, Antenna input, Power and Data inputs and outputs, This unit is equipped with special enhanced differential solution software and also Incorporates an intemal 12 channel GPS engine.

lOOOLMS A moclular OEM Unit with Antenna, Power and Data inputs and outputs and LED alarm and status Indicators.

3000lC A minimum configuration OEM eurocard size receiver board with minimum configuration RF and Power Supply assemblies where integration into other equipment is the responsibility of the original manufacturer (release mid 1997).

Subscriptlon Service Options

VRC This is the Virtual Reference Cell Service where the user selects a "virtual reference celr which provides an optimised set of RTCM corrections.

ves This is the Virtual Base Station Service where the user is provided with optimised RTCM corrections for the user current position.

OGPS This is to the Satellite DGPS Service provk:\lng OGPS Corrections.

OmniSTAR 3000LS SERIES DGPS RECEIVER PRODUCT FAMILY

Technical Data

Receive Frequency Automatic scanning:

Environment Operating Temperature: Non-Operating: Humidity: Vibration: Shock:

Acceleration:

Data Inputs and outputs Three Serial Ports: Eledricallnterface: Data Rales:

Message Rate: Plug Types:

Active Filtered Splitter

RF Input :

GPS RF Output : RF Connector Power Connector:

1525 MHz to 1559 MHz

- 20" 10 SOoC - 40· to 85°C 95% non-condensing 3Gi30 Hz! x, Y & z axes Max 7G. 5-20 msec zero rebound 4G (with optional software)

Command, Data & Auxiliary RS-232-C 300, 600, 1200, 2400, 4800, 9600, 19200 Typically 1-2 seconds output 08·9 and RJ 45 connectors

1525MHz· 1559MHz and 1575MHz 1575MHz TNC

KYCON

3000LM Receiver Module Front View

3000LM Rece;vef Module Rear View

The system is available world-wide from : Australia: OmniSTAR pty ltd. Norway: Fugro Starfix Europe AS. Netherlands: OmniSTAR BV. Singapore: Fugro OmniSTAR pte ltd. United Kingdom: Fugro Starfix UK . USA: OmniSTAR Inc.

Power Power Supply: Power Consumption:

Antennas Satellite Signal: Frequency Range: Gain: Polarisation: Elevation Angles:

Memory Program MemolY: Expansion MemolY:

Physical Characteristics

10 Vdc to 32 Vdc 250-500 rnA al12 Vdc

Plale and Helix antennas 1525 MHz to 1559 MHz 2dBi to 8 dBi RHe 5"-20" or 20"-45" or 45"-90"

640kB 512kB to 2 MB

Dimensions (approx): 200mm 0 x 150mm W x 50mm H Weighl (approx.): 1.5 kg Display: Two lines by 20 characters LCD

display with yellow backlight Conlrol: Five button control

Approvals Complies with European and USA EMIIEMC Dir&ctives

3000LR Rear Panel

3000LR12/tRFM Extended case

Tel: 61-8-93225295 Tel: 47-22-134700 Tel: 31 71 5814710 Tel: 65-5430200 Tel: 44-1224-257500 Tel: 1-713-785-5850

Fax: 61-6-93224164 Fax: 47_22_134646 Fax: 31 71 5814710 Fax: 65-5430500 Fax: 44-1224-257501 Fax: 1-713-785-5164

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APPENDIX 4

Personnel Resumes

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RESUME NAME: Robert Hearst

McPhar Geosurveys Ud. 1256B Kenisdale Blvd .• NIlWI11lIIkeI

Ordario. Canada L3Y 8Z9 Tel: (90S) 630-6800, Fax: (905)898-0336

E-Mai: info@mgssurveys.com WebSite: _.mgssurveys.com

PROFESSION: Geophysicist

EDUCATION:

1996 M.Sc., Geophysics and Geology, McMaster University 1983 B.Sc. (Honours), Geophysics and Geology, University of Western Ontario

WORK EXPERIENCE:

2004 - present McPhar Geos urveys Ltd., Senior GeopbysicistlData Processing Manager­Responsible for supervising McPhar's Data Processing Dept., responsible for processing data acquired by ground and airborne (installed in either rotary- or fixed-wing aircraft) electromagnetic, magnetic, radiometric, or other geophysical survey systems at the company's Data Processing Centre in Newmarket, using OASIS, MONTAJ, INTREPID and other software; quality control (QC) of acquired geophysical data; geophysical interpretations; operationallogiitics

2002 2004 Consulting Geophysicist. Toronto - servicing various international and local clients. Quality Control/Quality Assurance for Saudi Aramco on the World's largest multiple gradient airborne magnetic survey (approx. 1.7 million line-kms of data acquisition). Supervision and field quality control of data acquired by multiple aircraft on a daily basis including the acceptability and necessary re-flights / modifications required to meet contract specifications. Evaluation and specification of all final deliverable products including acceptability of final products and processing steps. Design, Quality Control I Quality Assurance and Interpretation of several smaller airborne and ground geophysical surveys completed in Canada and Venezuela for several Junior Mining Companies.

1997 - 2002 Stratagex Ltd., Geophysical Consulting, Toronto, Senior Geophysicist - Survey design, management, interpretation and client liaison for numerous mining companies involved in geophysical exploration for diamo nds, gold and base metals in Canada, Central America, South America and Africa. Including the selection of contractor(s), writing of survey specifications, review of contracts, quality control (QC)lquaiity assurance (QA) activities for ground and airborne data sets and interaction with project geologists.

1995 - 1997 Guaniamo Mining Company Limited, C/O Toco Mining Company Limited, Fort Lauderdale, Florida, USA, Chief Geophysicist and Project Manager - Design and management of an integrated geological and geophysical grassroots exploration program for hard rock and alluvial gold and diamonds in the Guyana Shield of Venezuela. Responsibilities included the assembly of a balanced geological and geophysical exploration team; selection of contractors and consultants (international and local); planning and execution of ground follow-up areas for geological,

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Robert HealSt, Page 2

geochemical and geophysical surveying; analysis of results; selection of drill sites, selection of bulk sampling sites; selection of possible alluvial plart sites; preparation of exploration budgets. Selection of appropriate geological and geophysical methodologies for the follow -up of high resolution aeromagnetic and radiometric surveys on the concessions. Analysis of country-wide and concession-scale aerorm.gnetic. radiometric, and sate11ite databases with selection of prospective areas for gold and diamond potential.

1983 1995 Paterson, Grant & Watson Limited, Consulting Geophysicists, Toronto - Senior Staff Geopbysicist (1987-1995) Staff Geophysicist (1983-1987) - Development of new client base; responsible for the design, implementation, acquisition, compilation, processing, interpretation and presentation of geophysical and geological exploration and development surveys for precious metals, diamonds, base metals and petroleum. Management of government contracts. Assembly and coordination of field work crews (worldwide) and data processing teams. Geophysical data processing and interpretation; organization, supervision, coordination and participation h geophysical data processing projects conducted by teams of three to four individuals. Responsible for scheduling assigned projects, team selection, quality control of the product and presentation and delivery of final products to the clients.

ACADEMIC AWARDS:

• McMaster University Department of Geology Graduate Scholarship 1991 - 1992, 1992 - 1993. • Canadian Society of Exploration Geophysicists Trust Fund Scholarship, donated by Chevron

Standard Limited, 1982.

PROFESSIONAL AFFILIATIONS:

• Society of Exploration Geophysicists (SEG). • Past President, Canadian Exploration Geophysicists Society (KEGS). • Environmental and Engineering Geophysicists Society (EEGS) • Canadian Institute of Mining and Metallurgy (ClM) (National and Toronto Branch). • Prospectors and Developers Association of Canada (PDAC). • Registered Professional Geophysicist, NAPEGG.

PROFESSIONAL EXPERIENCE:

• 22 years of continuous experience in the geophysical survey industry • Good management skills • Extensive international experience • Extensive experience processing and interpreting airborne magnetic and/or magnetics! radiometric

data • Excellent computer skills, experienced programmer

TECHNICAL PUBLICATIONS:

More than 15 technical publications between 1983 and 2003, list available on request.

LANGUAGES: English, working knowledge of French and Spanish

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Name: Profession:

ASIF M. MIRZA Geophysicist

HIGHLIGHTS OF QUALIFICATION

• Experience as a field geophysicist • Airborne geophysical data management and processing

McPhar Geosurveys Ltd. 1256B Kerrisdale Blvd., Newmarket

Ontario, Canada L3Y 819 Tel: (905) 830-6880, Fax: (905) 898-0336

E-Mail: info@mgssurveys.com WebSite: www.m!JSSUrvevs.com

• Seismic reflection data processing experience in Geophysical Investigations for the ~marcation of overburden from the bedrock and concerning oil resources

• Extensive experience in 2-D seismic reflection data interpretation • Experience in seismic data interpretation with the help of Seismic Straitigraphy, Borehole logging,

Gravity and Resistivity methods • Data acquisition with the help of different environmental instruments • Research about new environmental issues • Risk assessments and cost estimates related to environmental clean up • Evaluation of groundwater potential along sea shoreline, environmental investigations, remedial activities • Master's in Environmental Science, Master's in Geophysics and Bachelor of Applied Geology • Knowledge and work experience of the software's, Geosoft Montaj, DOS, Windows XPINTI2000,

M.S.Office, Corel DRAW 9, Arc view GIS • Well organized, self motivated, honest and goa1 oriented • Excellent team player with proven communication and interpersonal skills

PROFESSIONAL EXPERIENCE

Geophysicist McPhar Geosurveys Ltd, Newmarket, Ont, Canada 2004

• Airborne geophysica1 field data management and preliminary processing, of different projects, using Geosoft Oasis Montaj

• Qua1ity control decisions of survey data within the specification laid down with clients and McPhar's standards

• Gridding, contouring and leveling of magnetic and electromagnetic geophysical data to produce profiles and contours maps

• Set up and operate ground base station system, comprising magnetometer and GPS system • Producing of backup CD-ROM's of the processed data for forwarding clients via internet or company

network site • Making final reports of the processed geophysica1 data for clients

Field Geophysicist 2000-200 ] SEFEC (Pvt) Ltd, Karachi, Pakistan

• Seismic reflection data acquisition with the help of dynamite in Attock Area, Pakistan • Seismic reflection data recorded in the field using well-defined field parameters, i.e. source and spread

configuration • Seismic spread and geophone arrays designed using walk away test and spectral analysis • Performed field seismic data processing Attock Area, Pakistan

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EDUCATION • Master's in Applied Environmental Measurement Techniques, Chalmers University of Technology,

Sweden • Master's in Applied Geophysics Dept. of Earth Science, Quaid-I-Azam University, Islamabad, Pakistan • Bachelor of Applied Geology, Institute of Geology, University of the Punjab, Lahore, Pakistan

GEOLOGICAL & ENVIRONMENTAL FIELD EXCURSIONS

• Fieldwork about the Local Human Stresses on three lakes in Molandal Area, Sweden. • Field about Soil Farmation Analysing Aten Kapell, Vastergotland, Sweden. • Field study of the Air Quality at Universeum and Chalmers, Gothenburg, Sweden. • Geological & Geophysical Field Works in Northern Pakistan.

TRAINING

Internship: • Seismic Data Processing, OGDCL, Islamabad, Pakistan

Technical Courses: • Evaluation of Aggregates as constructional material, Course arranged by the Kent State University, Ohio,

USA and Institute of Geology, University of the Punjab, Lahore, Pakistan • Course on Geographical Information System (GIS), Course arranged by the National University of

Science and Technology, Islamabad, Pakistan • Course on Seismic Stratigraphy and Tectonics (Basin Analysis and Computer Modelling), Course

arranged by Petroleum Geology Investigators ApS, Copenhagen, Denmark and the Dept of Earth Sciences, Quaid-i-Azam University, Islamabad, Pakistan

• Well Logging interpretation, Course arranged by Petroleum Geology Investigators ApS, Copenhagen, Denmark and the Dept. of Earth Sciences, Quaid-i-Azam University, Islamabad, Pakistan

SCHOLASTIC ACHIEVEMENTS

• 2nd position in Fieldwork, B.Sc. Geology • 4th position in B.Sc. Applied Geology

EXTRA CURRICULAR ACTIVITIES

• Member Quaid-I-Azam Blood Donor Society (QBDS) • Member Dramatic Club QAU • Member of the University Cricket Team • Class representative during M.Sc. in University • Certificate of 2nd position in Cricket, Annual Sports 95 • Certificate of service for National Cadet Corp. (NCC)

LANGUAGES English, Urdu, Hindi and Punjabi

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5

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APPENDIX 5

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